IURC News Release

For Immediate Release

February 6, 2002

IURC APPROVES NEW PROJECTS REQUESTED BY INDIANA
MUNICIPAL POWER AGENCY

Today, in Cause No.
42063, the Commissioners determined it is in the public interest to grant the
Indiana Municipal Power Agency (IMPA) the authority to issue bonds to refinance
an old debt at a lower price, and to cover the costs of projects to benefit
Hoosiers.

The Anderson Combustion Turbine (“CT”) Expansion Project involves the
addition of one or more combustion turbines and associated facilities to IMPA’s
existing Anderson Station in Anderson, Indiana.Specifically, IMPA proposes to add between 80 and 120 MW of
capacity by constructing one or more additional dual fueled (oil and natural
gas) combustion turbines, together with associated equipment.

In the Selective Catalytic Reduction System ("SCR") project,
IMPA will use the financing to pay for and reimburse to Cinergy/PSI the portion
of the capital additions and improvements related to the SCR for which IMPA is
responsible as a co-owner of Gibson Unit #5, and Trimble County, Unit #1.

IMPA owns certain transmission and related facilities operated as part
of a Joint Transmission System (“JTS”) that also includes transmission and
related facilities owned by Cinergy/PSI and Wabash Valley Power Association, Inc.Each owner of the JTS is obligated to make
capital investments generally proportional to the load it serves from the JTS.

IMPA has been given the authority to issue nearly $98-million in
bonds.The Indiana Municipal Power Agency will provide
the Commission and the Office of Indiana Utility Consumer Counselor with a
financing report, which shows the amount of the bond issue and the interest
rate, no more than 30-days after the bonds are issued.IMPA will file reports on the progress of
the Anderson CT Expansion Project through completion and operation.